This paper investigates the new role of Italian regions in budgetary coordination of Local Government
(LG) fiscal targets. The governance perspective is adopted to address control issues resulted
from the new “Regional Stability Pact” arrangement. Three main questions will be answered. First,
what regional budgetary coordination models are taking place, and how effective are these models?
Second, what do regional arrangements look for the fiscal accountability of local governments?
Third, do regional arrangements serve as effective avenues for mitigating state fiscal constraints?



